INfosys posts 21.6 per cent rise in Q1 net profit

Friday, Jul 11, 2014,12:42 IST By metrovaartha A A A

Country’s second largest software services exporter Infosys Ltd today beat estimates by announcing  a 21.6 per cent jump in its net profit during first quarter ending June 30.    The company also retained sales growth outlook for this year following positive signs in its Western market and a leadership chance within the company with appointment of Vishal Sikka as the new CEO after the company witnessed over a dozen top executive leave it recently.    The company said the revenue grew 13.3 YoY in rupee terms,  earning per share grew to Rs 50.51 and a YoY growth of 21.6 per cent.    The revenues for the next quarter is expected to grow 7 per cent to 9 per cent in USD terms and 5.6 per cent-7.6 per cent in rupee terms.    He said the total revenue rose to Rs 12,770 crore for the quarter ended June 30, 2014, which was a QoQ growth was minus 0.8 per cent, while YoY growth was 13.3 per cent    The net profit rose to Rs 2,886 crore for the quarter, a QoQ growth was minus 3.5 per cent but a YoY growth was 21.6.    Earnings Per Share (EPS) was Rs 50.51 for the quarter ended June 30, 2014, QoQ growth was minus 3.5 per cent and YoY growth was 21.6 per cent.    The company continued to sit on a big tranche of liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds that slightly dropped to Rs 29,748 crore as on June 30, 2014, as compared to Rs 30,251 crore as on March 31, 2014.

Infosys CEO and Managing Director S D Shibulal said the company continued to enjoy the confidence of its clients by demonstrating superior execution capability and value realisation.
‘As I transition the CEO mantle to Vishal, I am confident that he will leverage this strong foundation to take Infosys to greater heights. I wish him the very best,’ he said. COO U B Pravin said ‘the company saw positive trends in our large deal wins during the quarter. We believe that this momentum will hold us in good stead as we focus on increasing volumes. Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent.’ CFO Rajiv Bansal said, ‘Infosys improved operational performance as a result of our cost optimisation initiatives and a focus on increasing productivity and utilization.’
‘This partially offset the impact of compensation increases for our employees this quarter. It will help us invest in areas that will accelerate growth,’ he said.